The Layoff Letter is a crucial document in Malaysian employment practice, used when companies need to reduce their workforce due to economic, structural, or operational reasons. It must be drafted in accordance with Malaysian employment legislation, particularly the Employment Act 1955 and related regulations. The letter serves multiple purposes: it formally communicates the termination decision, outlines the layoff's business justification, specifies the notice period and termination date, details all statutory and additional benefits, and provides information about final settlements and post-employment procedures. A properly drafted Layoff Letter helps protect both employer and employee interests, ensures legal compliance, and maintains professional relationships despite the difficult circumstances.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a notice of layoff/retrenchment
3. Opening Statement: Direct but compassionate statement of the layoff decision and its effective date
4. Business Justification: Brief explanation of the business circumstances necessitating the layoff
5. Notice Period Details: Specification of the notice period or payment in lieu of notice
6. Termination Benefits: Details of statutory termination/layoff benefits as per Malaysian law
7. Final Payment Details: Breakdown of final salary, unused leave, and other entitled payments
8. Company Property Return: Instructions for returning company property and settling any outstanding matters
9. Employment Insurance System: Information about EIS benefits and registration process
10. Contact Information: HR contact details for queries and support
11. Closing: Professional closing with acknowledgment section and authorized signatory
1. Outplacement Support: Details of any career transition support services offered by the company
2. Reference Letter Offer: Information about providing employment references
3. Recall Rights: Any provisions for priority rehiring if positions become available
4. Continuation of Benefits: Details about any extended medical or other benefits
5. Non-Disclosure Reminder: Reminder of ongoing confidentiality obligations
6. Severance Enhancement: Any additional severance payment above statutory requirements
7. Transition Period Role: If applicable, details about any temporary role during transition
1. Benefit Calculation Sheet: Detailed calculation of termination benefits, including years of service calculation
2. Final Payment Breakdown: Itemized list of all final payments including salary, benefits, and deductions
3. Company Property Checklist: List of company assets to be returned
4. EIS Information Package: Details about Employment Insurance System benefits and application process
5. Exit Process Checklist: Step-by-step guide for completing the exit process
Relevant legal definitions
Effective Date
Notice Period
Termination Benefits
Employment Insurance System
Final Payment
Basic Salary
Years of Service
Statutory Benefits
Company Property
Confidential Information
Employment Contract
Exit Process
Identity Card
Service Benefits
Working Day
Employment Act
Severance Payment
Last Day of Employment
Layoff Benefits
Notice Period
Termination Benefits
Employment Insurance System
Final Payment
Basic Salary
Years of Service
Statutory Benefits
Company Property
Confidential Information
Employment Contract
Exit Process
Identity Card
Service Benefits
Working Day
Employment Act
Severance Payment
Last Day of Employment
Layoff Benefits
Clauses
Termination Notice
Layoff Justification
Notice Period
Statutory Benefits
Final Payment
Confidentiality
Company Property Return
Non-Compete
Final Settlement
Employment Insurance
Reference Provision
Post-Employment Obligations
Unused Leave
Benefits Termination
Exit Procedures
Acknowledgment
Legal Compliance
Dispute Resolution
Final Release
Contact Information
Layoff Justification
Notice Period
Statutory Benefits
Final Payment
Confidentiality
Company Property Return
Non-Compete
Final Settlement
Employment Insurance
Reference Provision
Post-Employment Obligations
Unused Leave
Benefits Termination
Exit Procedures
Acknowledgment
Legal Compliance
Dispute Resolution
Final Release
Contact Information
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Construction
Healthcare
Education
Telecommunications
Hospitality
Energy
Mining
Agriculture
Transportation
Professional Services
Media and Entertainment
Relevant Teams
Human Resources
Legal
Corporate Communications
Senior Management
Industrial Relations
Compliance
Finance
Operations
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Employment Law Specialist
HR Business Partner
Chief Executive Officer
Managing Director
Chief Human Resources Officer
HR Operations Manager
Compliance Officer
Industrial Relations Manager
Personnel Manager
HR Administrator
Corporate Communications Manager
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